Chesapeake Energy Corporation – $CHK – Confident Investor Rating: Poor

Company name Chesapeake Energy Corporation
Stock ticker CHK
Live stock price [stckqut]CHK[/stckqut]
Confident Investor Rating Poor

The following company description is from Google Finance: http://www.google.com/finance?q=chk

 

Chesapeake Energy Corporation (Chesapeake) is a natural gas and oil exploration and production company. Chesapeake is engaged in the exploration, development and acquisition of properties for the production of natural gas and oil from underground reservoirs. It also provides substantial marketing, midstream, drilling and other oilfield services. Its operations are located onshore and in the continental United States. As of December 31, 2011, the Company owned interests in approximately 45,700 producing natural gas and oil wells that produced approximately 3.5 billion cubic feet of natural gas equivalent per day, net to its interest. It operates in three segments: exploration and production; marketing, gathering and compression, and oilfield services. In March 2011, it sold all of its Fayetteville Shale assets. In July 2012, it sold its interest in Chesapeake Midstream Partners, L.P. to Global Infrastructure Partners. In October 2012, it sold asset packages in the Permian Basin.
Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock. It is not possible to confidently invest in a company that is not currently profitable.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.